Bankrate, Inc. (RATE) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $5.25 million in the quarter, against a net profit of $0.28 million in the last year period. On the other hand, adjusted net income for the quarter stood at $14.88 million, or $0.17 a share compared with $10.85 million or $0.12 a share, a year ago.
Revenue during the quarter grew 26.94 percent to $118.66 million from $93.48 million in the previous year period. Gross margin for the quarter contracted 265 basis points over the previous year period to 46.74 percent. Operating margin for the quarter stood at negative 3.01 percent as compared to a positive 9.87 percent for the previous year period.
Operating loss for the quarter was $3.57 million, compared with an operating income of $9.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $30.42 million compared with $23.31 million in the prior year period. At the same time, adjusted EBITDA margin improved 70 basis points in the quarter to 25.63 percent from 24.94 percent in the last year period.
"We are pleased to report another quarter of solid financial performance which confirms that our strategy is working," said Kenneth S. Esterow, President and chief executive officer of Bankrate, Inc.
For the second-quarter, Bankrate forecasts revenue to be in the range of $115 million to $119 million.
For fiscal year 2017, Bankrate forecasts revenue to be in the range of $500 million to $515 million.
Working capital declines
Bankrate, Inc. has witnessed a decline in the working capital over the last year. It stood at $190.56 million as at Mar. 31, 2017, down 21.96 percent or $53.64 million from $244.20 million on Mar. 31, 2016. Current ratio was at 3.15 as on Mar. 31, 2017, down from 6.93 on Mar. 31, 2016.
Days sales outstanding went down to 41 days for the quarter compared with 54 days for the same period last year.
At the same time, days payable outstanding went up to 17 days for the quarter from 11 for the same period last year.
Debt remains almost stable
Bankrate, Inc. has witnessed an increase in total debt over the last one year. It stood at $296.36 million as on Mar. 31, 2017, up 0.84 percent or $2.47 million from $293.88 million on Mar. 31, 2016. Bankrate has witnessed an increase in long-term debt over the last one year. It stood at $296.36 million as on Mar. 31, 2017, up 0.84 percent or $2.47 million from $293.88 million on Mar. 31, 2016. Total debt was 27.33 percent of total assets as on Mar. 31, 2017, compared with 27.13 percent on Mar. 31, 2016. Debt to equity ratio was at 0.43 as on Mar. 31, 2017, up from 0.40 as on Mar. 31, 2016.
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